Your friend was supposed to repay a loan with a loan payment of $1,000 due in 6 months and another loan payment of $1,500 due in 4 years. However, your friend agrees to make two payments that replace the originally scheduled payments. The first replacement payment of $1,250 is due in 2 years and the second replacement payment of $X is due in 3 years. Suppose the interest is 7% p. a. compounded quarterly and the focal date is 3 years from now (Year 3), your friend asks for your help to determine the size of the second replacement payment, $X. Answer the following question: If the focal date is at year 3, what is the size of the equivalent single loan amount based on original loan payments? (Express in at least 6 decimal places) Hint: Based on loan payments asked in Q1 and Q2, you will solve for the answer here in Q3.

Note: to receive the full mark, you will use all the decimal places when performing calculations, leave all decimal places in your final answer, and there is no need to include symbols such as dollar sign ($) or comma in your final answer.